British consumers grew less gloomy in March as lower mortgage repayments boosted disposable income even as the recession took an increasingly heavy toll on jobs, a survey shows today.
The GfK/NOP consumer confidence barometer rose to a 10-month high of -30 in March from -35 in February, confounding expectations for an unchanged reading.
The biggest improvement related to people's expectations for the economy which rose to -31 from -40 in February.
The Bank of England slashed interest rates to a record low of 0.5% earlier this month and pledged to buy assets with £75 billion sterling of newly-created money in an unprecedented attempt to kick-start growth.
'Consumer confidence jumped quite significantly to levels not seen since May last year,' said GfK. 'It suggests that lower interest rates and a better picture for household bills are restoring some confidence,' it added.
The GfK consumer confidence barometer has been improving gradually since hitting a record low of -39 in July last year but remains low in historical terms.
